How Much Does a Chili’s Grill & Bar Franchise Cost?
Data from the 2023 Franchise Disclosure Document
Investment Summary
Total Investment
$1.8M – $6.5M
Franchise Fee
$60K
Royalty
1.3%
Ad Fund
2.7%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Chili’s Grill & Bar is $60K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Chili’s Grill & Bar franchise requires a total investment of $1.8M – $6.5M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $20K to $30K.
Ongoing Costs
Beyond the initial investment, Chili’s Grill & Bar franchisees pay ongoing fees. The royalty fee is 1.3% of gross sales (Gross Sales). The advertising or brand fund contribution is 2.7% of gross sales. There is also a technology fee of $2.
Net Worth & Liquid Capital Requirements
Chili’s Grill & Bar requires working capital of $20K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Chili’s Grill & Bar does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Chili’s Grill & Bar?
SBA Loans Issued
2
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Chili’s Grill & Bar has 2 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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